StockMarketWire.com - London and South East property investor McKay Securities said it had exchanged contracts to sell the Station Plaza freehold office asset in Theale, Berkshire for £8.2m.

The sale was conditional on vacant possession on expiry of the current lease at the end of July 2019.

Station Plaza, consisting of three office buildings totalling 41,420 square feet, was acquired by McKay in 2014 with a passing rent of £0.9m a yearfrom a 20-year lease across all three buildings, generating a 10.1% income yield.

A number of asset management options had been worked up for implementation on lease expiry, including an office refurbishment.

'However, the sale to an owner occupier delivers the anticipated refurbishment profit, at a price which is significantly ahead of book value as at 31st March 2019,' the company said.

The sale proceeds would be used for reinvestment into new higher-growth opportunities, through either acquisition, development or asset management initiatives.




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